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Copy of DirecTV uses aging of accounts receivable to estimate bad debts for the year. At the end of the year. DirecTV has prepared a
Copy of DirecTV uses aging of accounts receivable to estimate bad debts for the year. At the end of the year. DirecTV has prepared a schedule of accounts receivable sorted by age and corresponding uncollectible percentages as follows: Age Accounts Receivable Percent uncollectible 1-30 days $150,000 2% 31-60 days$45,000 5% > 60 days $15,000 10% Before the adjusting entries Allowance for Doubtful accounts has a credit balance of $1, 225. What is the adjusting entry to record bad debt expense for the year? Allowance for Doubtful Accounts -$5.250 Accounts Receivable -$5, 250 Bad Debt Expense +$5, 525 Allowance for Doubtful Accounts +$5, 525 Bad Debt Expense +$6, 750 Allowance for Doubtful Accounts +$6, 750 Bad Debt Expense +$4, 025 Allowance for Doubtful Accounts +$4, 025
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